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Small Business is Big Business at
National Postal Forum 2004
(Reprinted with Permission from C.
Clint Bolte, Author)
Six thousand strong gathered in our nation’s capital
September 19-22 to participate in the National Postal Forum. The
most number of attendees in four years came
to network with one another, to attend more than 100 workshops (68 new
topics), see the latest innovations from well over a hundred trade show
vendors, and enjoy a few days of early fall in Washington DC. The
various sessions were broken down by product symposiums, such as
periodicals, package, and remittance mail as well as eleven different
tracks to include mail center management, College & University,
mail marketing, production, technology, nonprofits, and printing to
name a few.
Attendees received a rousing welcome to the early
Monday morning general session by the President’s own United States
Marine Corps band and presentation of the nation’s colors. In his
opening remarks Postmaster General John E. Potter said, “Today, the
mailing industry appears focused on the mega-customer. But, we all know
that the largest growth segment in the American economy remains the
small and mid-sized business.” His message and the theme of the
conference was how to help small businesses
and value-added postal vendors to (1) understand the perceived value of
direct mail from consumer’s perspective
and (2) work with the USPS in leveraging its many existing and evolving
programs in growing together. He concluded,
“It’s time we return to the basics and a simple message to all
customers, large and small alike: The U.S. Mail has value. Mail works!”
Implementing this grass roots strategy will not be
easy. But ironically, as this article will detail, the printing
industry can and should play a
pivotal role in its successful implementation while clearly benefiting
printers, print associations, and most appropriately mutual customers.
USPS technologies now in use and evolving in the near
future are truly world class. The use of these technologies coupled
with private sector work sharing programs is resulting in USPS staffing
levels coming down to 708,000. This is the same as it was 20 years ago.
But today the post office is delivering 65 billion more pieces of mail
to 48 million more addresses than two decades ago.
Currently there are two bar code technologies in use to
automate the sorting of all classes of mail. Seventy percent of the
barcodes are being applied by customers or service bureaus and thirty
percent by the post office. They are currently sorting 80% of letter
mail to delivery sequence with an obvious goal of 100%. The next
generation of an 11-digit barcode, called a 4-state barcode, applied to
all mail will improve the reliability of this approach while also
further simplifying the universal tracing and tracking of mail from
entry to destination, hence, the term “intelligent mail.” This
sophisticated sortation coupled with services provided by specialized
logistics vendors is encouraging medium volume mailers to mail
drop-ship deeper into the USPS system and closer to the ultimate
delivery point. This avoids transfer at intermediary postal facilities.
Customers realize more predictable delivery dates and postal savings.
Actually the tracking of mail entry and arrival has
been available for several years by means of the USPS Confirm Service.
Advance delivery information is available on both outbound mail going
to customers and incoming hard-copy reply mail for automation
compatible first class mail, standard mail, periodicals, and flats.
This allows direct mail solicitations to be synchronized with
telemarketing or opt-in e-mail broadcasts. Deliver information on
invoices allow more efficient staffing of call centers. Embarrassing
miscues for such legal notifications such as insurance cancellation or
dunning notices might be avoided and thus improve client relations.
For printers offering fulfillment services and
embracing the “satisfied recipient” concept, Confirm will allow
them to quantify their proof of mailing as well as accurately predict
response rate curves when part of an on-going marketing support
program. With historical knowledge the service can help to optimize
inventory levels and smooth labor demands for pick and pack order
processing. While the USPS will be transitioning from the POSTNET and
PLANET coding structure to the new 4-state barcode, there really is no
reason for printers to wait for that transition to benefit their
clients from the existing, proven Confirm program. For those firms who
believe that you don’t manage until you measure, Confirm could
be a vital measurement tool.
Presentations by Confirm Program Manager Marlene Ryan
and the Customer Support Center Supervisor Earl Johnson indicated that
the USPS Confirm staff spends a good deal of time understanding what
the client’s business is and what they are trying to achieve to
arrive at realistic expectations and practical tracking objectives.
Their success rate is reflected in a 90+% retention rate of customers
trying and staying with the Confirm program.
Confirm subscription fees are $2,000 for 3 months and
up to 15 million scans, $4,500 annually for up to 50 million scans, and
$10,000 annually for unlimited scans. Visit the Confirm website at
mailtracking.usps or call 800-238-3150 for additional information.
The USPS COO Pat Donohoe in another general session
described the results of a comScore study indicating that catalogs
drive Internet sales. The study conclusively showed that consumers
receiving catalogs (1) were twice as likely to buy
from the firm’s website, (2) would buy considerably more per website
visit and (3) shopped more frequently than a consumer going straight to
the website.
From a production standpoint the heavy emphasis upon
standardized input requirements to drive efficiencies is easy to
understand. But the plain vanilla, everything-the-same approach turns
creative marketing types off, particularly when you are trying to grab
a prospective client’s attention. For package printers, i.e., diecut
finishing, there was ample excitement about highly customized mail or
irregular-shaped pieces. Lots of samples were passed out and the
specifications are pretty simple: the maximum weight is 3.3 ounces and
maximum size is 12” by 15.” The job must be entered in the direct
delivery unit and must be a minimum of 200 pieces. The rates applied
are basic nonletter, regular, N/P Standard with a residual shape
surcharge. This surcharge might be avoided if the diecut piece were
inserted into a clear envelope. Get your Postal Rep involved early the
planning of such a project.
Executive Vice President and Managing Director of
Chicago-based advertising agency DRAFT, John Minnic spoke on building
the ultimate customer relationships. From the basis of their Behavior
Path Marketing™ he suggested that customer’s loyal to a brand was
not enough but that you want to move clients to become “hard core
brand evangelists.” McDonalds calls these folks their SHUS, Super
Heavy Users, that stop buy a McDonalds several times a week if not more
than once a day for a meal or a snack.
Database technologies are a key tool in creating
a dialogue, i.e., encourage feedback, with loyal clients. The new USPS
products of Repositionable Notes and Customized Mailers contribute to
this dialogue instead of a monologue. Minnic concluded by saying, “It’s
better to reward brand
loyalty rather than exploiting
brand loyalty. And knowing,
serving, and indulging loyal customers is the best way to serve
shareholders.”
Consultant Jim Barlow spoke on the prudent practices
followed by mailers, printers, and advertisers. He recommended a series
of common sense steps to follow in avoiding major problem jobs: (1)
written job specifications confirming all verbal requests, (2) use of
MFSA trade customs (free at mfsanet.org), (3) use delimited database
mail list files, NOT Excel files, (4) copy the furnished working file
and verify, (5) QC checklist with signoff, (6) check output/samples to
assure USPS compliance, (7) check subcontractors QC processes, and (8)
communicate thoroughly with all parties.
While there were no sessions specifically designed to
discuss the Postal Reform legislation moving through Congress, there is
no doubt that having the Postal Forum in the District of Columbia was a
convenient way to let the various postal advocates in attendance have
easier logistical access to their elected officials.
As an aid to all customers, but clearly looking to the
smaller entities, the USPS is continuing to expand their variety of
services and materials available on-line. From stamps on-line to print
shipping labels and pay for package services with Click-n-Ship. PMG
Potter quipped, “How do you spell convenience? USPS.com!”
USPS’ Chief Marketing Officer Anita Bizzotto
emphasized that one of the keys to reaching small businesses will be
the local Postal Customer Councils (PCCs). Started in 1961, this group
now numbers less than 200 with varying degrees of effectiveness, as
some do not meet very often. Bizzotto and her marketing team will be
revamping many of their priorities in order to give these entities much
more support. For example, the former twice a year NPF gatherings is
changing to a spring National Postal Forum, next one in Nashville March
20-23, and a fall “PCC Day.”
Without going into detail of what all the USPS is
trying to do to ramp up support for the PCCs, the fact remains that
local PCCs will be driven by small business owners that function in
their PCC leadership roles as volunteers. While some PCCs have clearly
been dynamic and effective in both their networking and training
facilitator roles, their success will unfortunately rest on the
dynamism of isolated personalities.
This basic weakness might be a jewel of an opportunity
for the PIA regional affiliates. With 48% of all printed product
being distributed through the mail and an
increasing number of printers expanding into mailing services, it would
seem a logical extension of the mission of the regional affiliates to
partner with the various PCCs in their same region to host joint
gatherings. The affiliates have full time
paid professional staffs experienced at planning and facilitating
meetings while the PCCs have the topics, USPS support materials, and in
many cases speakers available. The topics are of interest to printers
and PCCs would like more printers as members. Sounds like maybe a
revenue sharing win-win situation.
To me certain conferences encourage a particular
biorhythm. From my printer’s perspective the National Postal Forum
shows that it’s not about selling ink on paper. It’s about staying
in touch with clients and reaching out to better qualify new customers.
It’s about creating value.
Article prepared by C. Clint Bolte, C. Clint Bolte
& Associates, Chambersburg, Pennsylvania. For additional
information please call 717-263-5768 or e-mail to cbolte3@comcast.net.
(www.clintbolte.com)
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